Mount RealVictor Lacroix and Armando Ferruci convicted and fined, respectively, $156,000 and $288,000

Decisions and Freeze and cease trade orders Securities

Montréal – In a decision handed down on October 30, 2007, Judge Duperron-Roy of the Court of Québec (Criminal and Penal Division), district of Laval, convicted Victor Lacroix and Armando Ferruci of the 26 and 48 counts brought against them by the Autorité des marchés financiers (the “AMF”). The judge also ordered them to pay, respectively, fines of $156,000 and $288,000, double the minimum fines required under the Securities Act (the “Act”), plus costs.

Victor Lacroix was facing 26 counts of violating the Act by:

  • aiding, by act or omission, Mount Real Acceptance Corporation in proceeding with the distribution of a form of investment subject to the Act, namely, promissory notes issued by the afore-mentioned company, without preparing a prospectus approved by the regulatory authority, thereby violating sections 11 and 208 of the Act (13 counts);
  • acting as a dealer or adviser without being registered as such with the regulatory authority, thereby violating section 148 of the Act (13 counts).

He was ordered to pay a total fine of $156,000 plus costs.

Armando Ferruci was facing 48 counts of violating the Act by:

  • aiding, by act or omission, Mount Real Acceptance Corporation and Mount Real Financial Corporation in proceeding with the distribution of a form of investment subject to the Act, namely, promissory notes issued by the afore-mentioned companies, without preparing a prospectus approved by the regulatory authority, thereby violating sections 11 and 208 of the Act (24 counts);
  • acting as a dealer or adviser without being registered as such with the regulatory authority, thereby violating section 148 of the Act (24 counts).

He was ordered to pay a total fine of $288,000 plus costs.

On January 24, 2007, the AMF filed 619 charges against 24 individuals who were involved at various levels in the matter of Mount Real Corporation and its affiliates.

The Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec’s financial sector.

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